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WORLD> Asia-Pacific
S Korea offers tax incentives to firms with no job cuts
(Xinhua)
Updated: 2009-03-10 16:38

SEOUL -- The South Korean government announced that only companies that do not conduct job cuts are eligible for government tax benefits, South Korea's Korea Herald reported Tuesday.

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According to the Ministry of Strategy and Finance, the South Korean government decided to reduce corporate taxes for companies that keep their employment at 2008 levels, toughening its earlier qualification for the corporate tax cuts.

One month ago, the ministry announced that it would apply corporate tax cuts for companies that reduce number of their employees by up to 5 percent.

However, the government, aiming at preventing further job losses, changed its provision and that the companies should cut wages and share jobs to apply for corporate tax reduction, said the ministry.

In addition, a company should have experienced a sales decline of more than 10 percent, an output fall by more than 10 percent, or an increase in average monthly stock by 50 percent, annually, to be eligible for tax reduction, the ministry said.

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